DraftKings Founder Waves White Flag in NY....One Year After Saying They Could Achieve a Profit

Written by:
Gilbert Horowitz
Published on:
May/27/2023

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DraftKings Founder Waves White Flag in NY....One Year After Saying They Could Achieve a Profit

(June 11, 2023) - "One of the most misunderstood elements of our business? State unit economics — how the contribution profit scales and what the underlying drivers are as the state matures. We’re working to simplify what we see under the hood so investors can better understand @DraftKings's moves."

This quote courtesy of Jason Robbins, DraftKings founder and current CEO.  And it relates to the ability to turn a profit in the state of New York.  Impossible if you are regulated.

New York's tax rate is over 50 percent and there are factors that make that amount a little higher.

Joe Brennan, Jr., among the architects of legalized sports betting in the US, tweeted out in response:

"From the guy who originally said $DKNG could run profitably in NY at a 51% GGR tax rate, only to 1 yr later tell lawmakers they couldn’t pull it off and may need to screw state players with higher prices unless operators get tax relief."

Among DraftKings biggest cheerleaders, Captain Mike Dzikowski, chimed in.

"This is great news. The story that is told should be very clear and understandable by retail investors and analysts alike. A story that clearly paints the picture and vision while building enthusiasm about the direction of the business. $DKNG."

But Chris Portillo may have put it best responding to Robins.

"Stop the excessive SBC/&or being deceptive about it. That’s one of the biggest areas where credibility has been hurt last few years. Whether masking or doing it overtly people see through it. The semantics of it and how you guys reference, also pointless."

NFL Investigating Colts' Isaiah Rodgers for Possible Betting

(June 5, 2023) - The NFL has confirmed it is conducting an investigation into Indianapolis Colts cornerback and kick returner Isaiah Rodgers for possible violations of the league's gambling policy.

"We are aware of the NFL's investigation and will have no further comment at this time."

Rodgers said via Twitter he is prepared to take full accountability for his actions.

"I know I have made mistakes and I am willing to do whatever it takes to repair the situation," Rodgers wrote. "The last thing I ever wanted to do was to be a distraction to the Colts organization, my coaches, and my teammates. I've let people down that I care about.

"I made an error in judgment and I am going to work hard to make sure that those mistakes are rectified through this process. It's an honor to play in the NFL and I have never taken that lightly. I am very sorry for all of this. "

Dana White Predicts Barstool Sports End With Portnoy Gone

(May 27, 2023) - Dave Portnoy, Barstool Sports colorful and controversial founder, could be leaving the company once his contract is up in the coming year.  Barstool Sports has been fully acquired by Penn National and now offers sports betting in some US states.

UFC president Dana White sees the end of Barstool Sports should Penn National decide not to renew Portnoy's contract.  White disapproves of Portnoy selling to Penn.

White used some colorful language while appearing on the “The Pat McAfee Show" to describe what many are calling a "sell out".

“Let me tell you what, once you start to get suits involved in your business and these f–king corporate guys who think know what they’re f–king doing… and most of them don’t know jack s–t.

“You’re gonna see it with Barstool over the next couple of years too. They came in and they bought it out, they bought Portnoy out.

“I had a situation yesterday with Barstool and it’s turning into a corporate f–king s–t-show too. It’s what happens when you get these f–king suits involved in your business.”

Earlier this month, Barstool Sports fired popular host Ben Mintz for rapping a racial slur on air.

- Jagajeet Chiba, Gambling911.com

New Horse Racing League Set to Launch This September

(May 24, 2023) - Some excitement in the world of thoroughbred racing as a group of investors have gotten together to create a new horse racing league that will debut this coming September.   It's being called the National Thoroughbred League.

36 horses have been purchased specifically for the newly formed league.

From Matt Hegarty of DFR:

The founders, who include Randall Lane, the chief content officer of Forbes, said they are attempting to create an event-focused league for Thoroughbred racehorses that will be modeled on other sporting leagues, though the concept has no precedent in racing. Under the concept, a company structured as a “league office” will buy the racehorses privately, conduct a draft among six team owners that are all equity holders in the league, and fund the purses for a series of races to be held on five weekends in the late summer and fall at five different tracks, starting with Kentucky Downs on Sept. 2-3, Labor Day Weekend.

“Several times a year we see that Thoroughbred racing is as good as anything in the world,” Lane said. “The Kentucky Derby week is as good [an event] as anything in the world. The Preakness, the Belmont, the Breeders’ Cup. Why can’t we have more of that?”

Gambling911.com agrees!!!

Hegarty explains further:

Each league “event” will include three races open only to horses that are owned by the company, the organizers said. Each team will be able to enter one of their six horses in each of the three races, for a maximum field of six horses in each race. Betting will be allowed on the races, administered by the track, with the proceeds of the betting going to the host track and its horsemen, the organizers said.

Read More at DFR Here

Doyle Brunson Tweets From the Grave

(May 19, 2023) - Doyle Brunson may have passed away Monday just short of his 90th birthday, but his was among the most popular Twitter accounts in the poker world.  You didn't really think death would get in the way of a good tweet, did you?

That - what we think will be his final tweet - allowed his fans to offer their condolences.

"Godspeed Doyle. You'll always be remembered."

"Thank You! We love you & will see you again!! "

"This tweet alone should win an award next year! Legends never die."

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"Just cashed in my chips but before I walk out that door one last time, I just wanted to tell you all how much I loved this poker world. I didn’t want to go yet, was actually planning to play some events this summer….

"But when I saw the mark up @MikeMatusow was charging for the 10k O/8 event… my heart just gave out! . Be kind to one another. I’ll save you all a seat in Dolly’s game in Heaven."

AP: Gambling’s Place in Campus Culture Portends Scandals to Come

(May 10, 2023) - The Associated Press' Eric Olson makes it abundantly clear: It wasn't a matter of IF but WHEN there would be a college sports gambling scandal.  This being the result of the proliferation of legalized sports betting in the United States since the The Professional and Amateur Sports Protection Act (PASPA) was deemed unconstitutional by the US Supreme Court in 2018.

In just under a one-week period, two scandals have come to light.  The first involved "suspicious betting activity" tied to the Alabama Crimson Tide baseball team in their game against LSU.  The other involves several individuals across a wide array of sports programs at both Iowa University and Iowa State.

And this likely won't be the end of it.

“This is probably just the tip of the iceberg,” Keith Whyte, executive director of the National Council on Problem Gambling, said Tuesday. “In surveys, the athletes self-report a high rate of gambling participation and sports betting. It wouldn’t surprise us if there’s more problems that surface.”

The University of Alabama fired its head coach while the Iowa Gambling Commission reports that 26 Hawkeyes athletes are suspected of wagering on sports in violation of NCAA rules, with upwards of a hundred individuals tied to the probe.   15 athletes across three sports also are suspected of violating gambling rules at Iowa State.

Brian Ohorilko, director of gaming for the Iowa Racing and Gaming Commission, insists there is no evidence to suggest that any matches were fixed.

The American Gaming Association (AGA) implored its members to cease advertising deals with universities by July 1.  PointsBet finally did just that on Tuesday as it announced the termination of a marketing deal with the University of Maryland.  The wagering firm claims the partnership technically ended last month.

Another partnership with the University of Colorado also ended last month.  That one included financial incentives for the university when new users signed up for PointsBet via a promotional code.   There reportedly was no such incentives deal with the University of Maryland.

The Inside Story of Jon Howard’s Bet365 Fraud Conviction

(Mary 7, 2023) - iGaming Next this past week provided an exclusive look into what is believed to be the first in which someone was criminally convicted of fraud for allegedly breaching a betting platform’s terms and conditions through multi-accounting.

Jon Howard, a 40-year-old from Essex, England, was just charged with opening online betting accounts under various individual names without the limitations placed on a single account. 

Over a span of nearly 15 years, Howard had opened approximately 1000 wagering accounts, receiving £236,000. 

iGaming Next suggests that Howard may not have even violated Bet365's policy.  He also was not convicted of money laundering, which they note is unusual when it comes to fraud cases.

"Howard’s conviction involved multi-accounting, a widespread practice in the gambling industry, which is sometimes referred to as ‘gnoming’.

"Sources close to the case expressed bewilderment at what appeared to be a civil matter being pursued as a criminal case rather than a civil dispute. "

What iGaming Next uncovered: Bet365 froze many of Howard’s multi-accounts due to the identification of profitable betting patterns.  Howard discontinued his multi-account and matched betting practices around 2018.  He then attempted to release funds that had been locked up in accounts frozen by bookmakers.

Here is the clincher: To release the funds, he had to initiate court proceedings against bet365. He did so using - you guessed it - the personal details of another individual.

It's a riveting tale.  Read More Here

University of Alabama Releases Statement Related to Suspicious Betting, Ohio Action

(May 2, 2023) - The University of Alabama issued a statement Tuesday hours after it was revealed that Ohio regulators would prevent sportsbooks in that state from taking bets on the Alabama baseball team and games that feature them.

Ohio regulators cited "suspicious betting behavior" brought to their attention by U.S. Integrity, a firm tasked with monitoring this type of activity.  Matthew T. Schuler, the executive director of the Ohio Casino Control Commission, issued a directive Tuesday for sportsbooks licensed in the state to halt taking bets on Alabama baseball games.

“Alabama Athletics became aware of this situation Monday evening and is actively seeking information about the report," a UA athletics spokesperson wrote in a statement to The Tuscaloosa News.

Later in the afternoon Tuesday, Louisiana Gaming Control Board, Ronnie Johns, offered better insight into what prompted the alert. The game was played Friday night between Alabama and LSU.

"There were a couple of bets made in Cincinnati, Ohio," Johns said. "One was on a parlay which involved the LSU-Alabama game, and then there was another straight-up (money line) bet, I was told it was a large bet that involved LSU-Alabama."

The emergency order requires that "any wagers placed on an incomplete sporting event that has had wagering suspended through the issuance of an emergency order must be voided in accordance with Chapter 37775-11-01 (F)."

Cardinals May Ask Voters to Approve Sports Betting in Missouri

(May 2, 2023) - Missouri lawmakers have failed to act on regulation of sports betting in the Show Me State.

The conflicts that exist include those who flat out don't want any form of gambling expansion and those who want to include lottery terminals throughout the state.

On Tuesday it was revealed that the St. Louis Cardinals MLB team could take the initiative by asking voters to approve sports betting.

Cardinals President Bill DeWitt III told the Post-Dispatch they will consider a voter referendum on the November ballot.

“We’re going to take a serious look at that,” DeWitt said.

“It’s pretty clear they don’t have the votes for slot machine expansion,” he said.

Lobbying efforts are ongoing and being pushed by both the professional sports teams in the state and casinos.

Missouri is home to the St. Louis Cardinals and Kansas City Royals in Major League Baseball, Kansas City Chiefs in the NFL and St. Louis Blues in the NHL.

“I think there are a few things we may push on here at the end,” DeWitt said. “We’re just so frustrated. It’s working against our fans and our citizens who overwhelmingly support it.”

- Gilbert Horowitz, Gambling911.com

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